The Alibaba Fever


It’s all about supply, demand and control. Alibaba is about to flood the market with 310 million shares and investors are scrambling to get a piece of the Chinese giant. Some investors are selling their shares in other companies so they can invest in Alibaba. It’s going to be a day of frenzied trading and the world will surely watch with bated breath. According to news sources, control of the company will remain with its founder Jack Ma, along with his twenty-plus trusted Chinese managers dubbed as the “Alibaba Partnership”. This group has the authority to elect its own board members, a clause that was unacceptable when they were assessing Hong Kong’s stock market. Alibaba says that this structure is intended to ensure control and creative vision of the company. It remains to be seen if investors and indeed the market will respond positively to these control provisions.

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